USD LIBOR-Linked Collateral
On March 5, 2021, the United Kingdom Financial Conduct Authority (FCA) and Intercontinental Exchange (ICE) Benchmark Administration (IBA) announced that the one-week and two-month U.S. dollar (USD) LIBOR settings will cease to be published immediately after December 31, 2021. The publication of the overnight, one-, three-, six-, and 12-month USD LIBOR settings was extended through June 30, 2023, providing additional time to wind down or renegotiate existing contracts that reference these LIBOR settings.
As the one-week and two-month USD LIBOR settings are no longer published, financial institutions are reminded that it is important to ensure loans and securities pledged as collateral to their Reserve Banks for Discount Window and Payment System Risk purposes continue to comply with all usual eligibility requirements. Collateral data is routinely validated for eligibility by Reserve Banks as part of their normal risk management practices.